2 Top Gold Miners I’d Buy Right Now

Here’s why Agnico Eagle (TSX:AEM)(NYSE:AEM) and Barrick Gold (TSX:ABX)(NYSE:GOLD) are two top gold miners to watch right now.

| More on:
Gold bars

Image source: Getty Images

As a safe haven, gold is one of the investments many turn to in times of uncertainty. With global uncertainty picking up, gold miners are often a top choice for many investors in this environment.

As a hedge against inflation, currency depreciation, and a range of other factors investors are worried about, gold miners are a great place to be. In my view, two of the best options for investors right now are Agnico Eagle (TSX:AEM)(NYSE:AEM) and Barrick Gold (TSX:ABX)(NYSE:GOLD). 

Here’s why these two stocks are atop my watch list in terms of gold miners right now.

Agnico Eagle

Since 1998, Agnico Eagle has outperformed both gold equities and gold. This stock has provided investors with a compounded annual growth rate of around 13%. That’s impressive.

Agnico Eagle has accomplished this as a result of a well-executed strategy to create shareholder value. Of course, the rising price of gold has helped this company’s fundamentals in a big way. However, Agnico Eagle has a number of other factors that has worked in its benefit for some time.

Namely, Agnico Eagle’s growth has been driven by strong investment in its core operations as well as optimal acquisitions. In particular, I think the acquisition of Kirkland Lake Gold was one of the best consolidations in the industry. As investors look for miners with reserves backing their long-term growth prospects, Agnico Eagle could outperform.

Additionally, Agnico Eagle’s fundamentals are solid. This company is expected to post exceptional levels of free cash flow over the long term. And it’s a company with one of the lowest share counts among its peers. Indeed, for those bullish on the price of gold, there’s a lot to like about this top gold miner right now.

Barrick Gold

Similar to Agnico Eagle, Barrick Gold is driven by many of the same factors. As far as reserves go, Barrick is among the leading global players in gold reserves. From a production standpoint, this is also true.

Thus, for investors looking for size and scale in this industry, there’s a lot to like about how this company is positioned. Barrick’s mines are located in mining-friendly jurisdictions in South America, Australia, North America, and Africa. The gold miner has nine gold mines — among which the Carlin mine generates a significant portion of the company’s revenues.

From a geographical standpoint, the United States accounts for most of ABX’s revenue. Thus, investors who are spooked by the current geopolitical situation might find this to be a good thing.

Meanwhile, Barrick Gold continues to post impressive earnings. This company reported net earnings of $726 million during Q4. This is a substantial increase from last year’s figure. However, that does not factor in the same quarter’s impressive growth in gold prices. 

I think for those bullish on gold, both Agnico and Barrick are excellent choices. These are top-notch companies with excellent growth outlooks.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

Gold bars
Metals and Mining Stocks

Why Alamos Gold Jumped 7% on Wednesday

Alamos (TSX:AGI) stock and Argonaut Gold (TSX:AR) surged after the companies announced a friendly acquisition for $325 million.

Read more »

Nuclear power station cooling tower
Metals and Mining Stocks

If You’d Invested $1,000 in Cameco Stock 5 Years Ago, This Is How Much You’d Have Now

Cameco (TSX:CCO) stock still looks undervalued, despite a 258% rally. Can the uranium miner deliver more capital gains to shareholders?

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Stocks for Beginners

Cameco Stock and More: 3 TSX Commodity Titans to Watch in 2024

Cameco stock and these others will provide you with growth that goes beyond just a year or two, with all…

Read more »

Handwriting text writing Are You Ready For Tomorrow question. Concept meaning Preparation to the future Motivation Stand blackboard with white words behind blurry blue paper lobs woody floor.
Stocks for Beginners

3 Reasons to Buy Lundin Stock Like There’s No Tomorrow

Lundin stock (TSX:LUN) has been killing its production of copper and plans on blowing its records out of the water…

Read more »

Gold bars
Stocks for Beginners

TSX Materials in March 2024: The Best Stock to Buy Right Now

Materials have been quite volatile, though the price of gold has surged to all-time highs. That makes this stock a…

Read more »

Gold bars
Metals and Mining Stocks

Will Gold Stocks Rally in 2024?

Down almost 30% from all-time highs, Franco-Nevada is a gold mining stock trading at a discount to consensus price target…

Read more »

A miner down a mine shaft
Stocks for Beginners

Canadian Mining Stocks: Buy, Sell or Hold?

Canadian mining stocks have seemed like such a strong investment, but with shares down significantly this year, what should we…

Read more »

Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)
Stocks for Beginners

Great News for Gold Stock Investors!

Gold has hit an all-time high! Which is good news for some gold stocks, and really good news for others.

Read more »